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Study Resources (Accounting)

5) Which of the following is a requirement of the Sarbanes-Oxley Act? A) The outside auditor must issue an internal control report for each public company. B) The Public Company Oversight Board must conduct audits of public companies. C) Accounting firms may not both audit a public client and also provide certain consulting.
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Learning Objective 8-6 1) The acid-test ratio appears in the current assets section of the balance sheet. 2) Accounts receivable amounts are generally shown on the balance sheet net of the allowance. 3) The acid-test ratio is computed as current assets divided by current liabilities. 4) Days' sales in receivables is the ratio.
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11) A petty cash fund was established with a $400 balance. It currently has cash of $10 and petty cash tickets as shown below. Travel expense $120 Office supplies $200 Equipment rental expense $70 The journal entry to replenish the account would be which of the following? A) Debit various expenses $390, credit Cash  $390 B) Debit various expenses.
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11) A company reports Net accounts receivable of $107,460 on its December 31, 2013 balance sheet.  The Allowance for uncollectible accounts has a credit balance of $3,200.  What is the balance in Accounts receivable? A) $104,260 B) $107,460 C) $105,860 D) $110,660 12) Assets are listed on the balance sheet in order of liquidity.  Which.
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Learning Objective 8-1 1) The two major types of receivables are accounts receivable and notes receivable. 2) The creditor is the entity that signs a note. 3) The two major types of receivables are interest receivable and taxes receivable. 4) Notes receivable are usually longer in term than accounts receivable. 5) Which of the.
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11) Which of the following asset categories would include fencing? A) Machinery and equipment B) Land improvements C) Buildings D) Land 12) Which of the following asset categories would include the cost of clearing land and removing unwanted buildings? A) Land B) Buildings C) Land improvements D) Machinery and equipment 13) Which of the following is NOT a characteristic of.
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28) In the following situation, which internal control procedure needs strengthening? At Hofstra Services, the operations accountant is responsible for safeguarding and maintaining the pipe inventory and also to record inventory transactions into the journal.  A separate accounting clerk keeps records of the cash receipts and payments.  The treasurer signs checks.
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38) At January 1, Davidson Services has the following balances: During the year, Davidson has $104,000 of credit sales, collections of $100,000, and write-offs of $1,400.  Davidson records Uncollectible accounts expense at the end of the year using the percent-of-sales method, and applies a rate of 1.1% based on past history. Prior.
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8) The treasurer of a company is the chief accounting officer of that company. 9) The chief accounting officer of a company is the: A) controller. B) treasurer. C) external auditor. D) internal auditor. 10) The company officer who is responsible for writing checks is the: A) controller. B) treasurer. C) external auditor. D) internal auditor. 11) Which of the following.
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11) Which of the following inventory costing methods yields the highest ending inventory when costs are rising during the accounting period? A) Specific-unit-cost B) Average-cost C) Last-In, First-Out D) First-In, First-Out 12) Which of the following inventory costing methods yields the lowest ending inventory when costs are rising during the accounting period? A) Specific-unit-cost B) Average-cost C) Last-In,.
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8) Which of the following entries would be used to account for uncollectible receivables using the allowance method? A) Allowance for uncollectible accounts is debited and Uncollectible accounts expense is credited. B) Uncollectible accounts expense is debited and Allowance for uncollectible accounts is credited. C) Uncollectible accounts expense is debited and Accounts receivable.
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Learning Objective 7-8 1) Before signing a check, the controller or the treasurer should examine the purchase order, the invoice, and the receiving report to determine that the company received the goods and that the company is paying only for the goods received. 2) A receiving report should be matched with.
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52) A newly created design business called Smart Art is just finishing up its first year of operations.  During the year, there were credit sales of $40,000 and collections of $36,000.  One account for $650 was written off.   Smart Art uses the aging-of-accounts method to account for uncollectible account expense,.
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18) Which of the following describes the internal control component risk assessment? A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) Risk assessment is the "tone at the top" of the business. C) A company must identify its.
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47) Please refer to the following bank reconciliation: Please prepare the adjusting entry for the first reconciling item (note collected by bank.) 48) Please refer to the following bank reconciliation: Please prepare the adjusting entry for the second reconciling item (interest revenue.) 49) Please refer to the following bank reconciliation: Please prepare the adjusting entry.
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40) Please refer to the following information needed to reconcile the cash balance for Woods Paper Products. •A deposit of $5,794.62 is in transit. •Outstanding checks total $1,533.25. •The book balance is $5,695.62. •The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month's rent. •The bank balance at February 28, 2008.
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18) The following information is from the 2013 records of Armadillo Camera Shop: Accounts receivable, December 31, 2013 $20,000 (debit) Allowance for uncollectible accounts, December 31, 2013 prior to adjustment 600 (debit) Net credit sales for 2013 95,000 Accounts written off as uncollectible during 2013 7,000 Cash sales during 2013 27,000 Uncollectible accounts expense is estimated by the aging-of-accounts-receivable method.  Management.
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37) Berring Sales uses LIFO.  The partially completed inventory record for January appears below. On January 14, the company sold 10 units.   On January 29, the company sold 50 units.   Complete the inventory record and calculate the Cost of goods sold for the month of January.  (Please round to the nearest.
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27) Santa Fe Tile Company had the following inventory purchases and sales during the month of May.  The company uses the periodic inventory method.   Purchases     Sales     Date Units Unit Cost Total Units Unit Price Total May 1 100 $4 $400 5 200 5 1,000 10 100 $10 $1,000 15 100 6 600 20 150 7 1,050 25 200 11 $2,200 30 160 8 1,280 710 $4,330 300 $3,200 If Santa Fe uses LIFO costing, how much was the Cost of goods sold for the month? A) $1,400 B) $1,850 C) $1,380 D) $1,640 28) Santa Fe.
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Learning Objective 7-7 1) A point-of-sale terminal (cash register) provides control over cash in the form of a tape record of sales which is compared to the count of the drawer. 2) As part of the internal control over cash receipts by mail, the mailroom sends both the customer checks and.
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14) A company uses the direct write-off method to account for uncollectible receivables.  Which of the following is included in the entry to write off an uncollectible account? A) A debit to Uncollectible account expense B) A debit to the customer's Account receivable C) A credit to the Allowance for uncollectible accounts D) No.
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47) A company which uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.   The company sold the whole lot to a supermarket chain for $10,000 on account. The company uses the specific-identification-method of inventory costing.  Which of.
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10) Journal entries that are necessitated by reconciling items on the book side of the reconciliation all include either a debit to Cash or a credit to Cash. 11) If the bank reconciliation includes interest revenue, a journal entry is required which debits Cash and credits Interest revenue. 12) Which of the.
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5) Ending inventory for the current accounting period is understated by $2,700. What effect will this error have on Cost of goods sold and Net income? A) Cost of goods sold Net income Understated Understated B) Cost of goods sold Net income Overstated Overstated C) Cost of goods sold Net income Understated Overstated D) Cost of goods sold Net income Overstated Understated 6) Ending inventory for the current accounting period is.
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8) Golden Oak Antique Shop has the following account balances at the end of the current accounting period. Beginning inventory $73,250 Net purchases 57,650 Net sales revenue 85,500 A normal gross profit for the company is $45%.  What is the company's estimated cost of goods sold for the accounting period? A) $92,425 B) $38,475 C) $47,025 D) $83,875 9) Callahan Computers stores.
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15) Williams Company had the following balances and transactions during 2013. Beginning inventory 10 units at $70 June 10 Purchased 20 units at $80 December 30 Sold 15 units December 31 Replacement cost $78 What would the company's inventory amount be on the December 31, 2013 balance sheet if the perpetual average costing method is used? (Answers are.
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Learning Objective 7-1 1) Internal control is the organizational plan and all the related measures adopted by an entity to safeguard assets, encourage employees to follow company policy, promote operational efficiency, and ensure accurate and reliable accounting records. 2) Which of the following is TRUE of internal control? A) A company's outside.
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11) GAAP prefers companies to use the: A) direct write-off method to evaluate bad debts. B) allowance method to evaluate bad debts. C) amortization method to evaluate bad debts. D) 360-day method to evaluate bad debts. 12) Which of the following is NOT a key issue in controlling and managing receivables? A) Separate cash-handling, credit, and.
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7) Which of the following is a security procedure designed for e-commerce? A) Burglar alarms B) Firewalls C) Fireproof vaults D) Secure inventory storage 8) A malicious program that enters program code or destroys data without authorization is an example of: A) a password. B) phishing. C) encryption. D) a virus. 9) Which of the following is a security procedure.
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5) When using periodic inventory, the closing process begins with closing out the Beginning inventory to Cost of goods sold.  The second step is to set up the ending inventory by debiting Cost of goods sold and crediting Inventory. 6) Samson Company had the following balances and transactions during 2012. Beginning inventory 10.
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17) Metro Computer Company had the following balances and transactions during 2012. Beginning inventory 100 units at $75 March 10 Sold 50 units June 10 Purchased 200 units at $80 October 30 Sold 150 units What would the inventory amount be as reported on the balance sheet at December 31, 2012 if the perpetual average-costing method.
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4) Companies that use GAAP accounting will prefer the use of the direct write-off method. 5) Archer Company and Zorro Company both have significant amounts of accounts receivable at any time, and both experience uncollectible accounts from time to time.  Archer uses the percent-of-sales method to account for uncollectible accounts and.
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